Due to a huge amount of manual interventions, corporate events processing is one of the most risky activity in the back office. Consequently, the lack of automation in Corporate Actions used to be a real barrier to STP. Nevertheless, new technologies (JAVA, XML, etc.) and XMS’ unique design - and the launching of the SWIFT ISO 15022 message standard - eventually make Corporate Actions’ automation possible.
XMS Corporate Actions catches information provided by different sources : Telekurs, FTID, Fininfo, SWIFT ISO 15022 range, ... and thus mitigates risks inherent in the capture process, delivering single access to event information.
XMS Corporate Actions, as well as all XMS solutions suite, is fully SWIFT compliant :
- Integration of incoming messages
- Generation and validation of outgoing messages
- Use of a “SWIFT Solutions Partner” labeled interface
XMS Corporate Actions handles (integration and reconciliation) all incoming SWIFT messages, among others :
- MT564 : Notification
- MT565 : Instruction
- MT566 : Confirmation
- MT567 : Status advice
Process Automation : Alerts & Triggered Actions
Taking advantage of XMS STP capabilities, XMS Corporate Actions continuously monitors the activity and proactively alerts users ensuring critical actions are not missed (e.g. : users are automatically alerted before issues become real problems - critical dates).
User-defined alerts :
- highlight a large series of elements linked to the performance of the system as well as Corporate Actions potentially risky issues
- provide a unique control on the system in respect of priorities and risk’s levels
Fine-tuning alerts’ definition drastically reduces the need to process manual actions (inquiries, reports’ edition). Also, XMS Corporate Actions operates with implied systems (in the workflow). Under pre-defined condition(s), actions are automatically initiated to give the hand to other applications : it
drives the transactional chain and thus enhances operational fluidity.
- connection to front, middle and back office systems
- starting or exiting a program
- sending e-mails
- writing/reading in databases, repositories, ...
- connection to financial messaging systems
- connection to SWIFT interfaces
- generation and validation of SWIFT messages
The advantage can be directly measured in terms of risk control and operational efficiency.
XMS Corporate Actions compares different sources in order to automatically check the validation/quotation (data concordance, exactness) of the event notification.
First step : data integration (different formats), transformation into the XML format.
Second step : data control through user-defined matching rules.
Third step : automated alerts and/or triggered actions according to the matching set (set of comparison rules).
Examples : automated validation to the general ledger if information is identical through the 3 sources ; automated alerts escalation following different discrepancies levels, ...
Exceptions Detection and Management
Thanks to XMS STP, XMS Corporate Actions turns out to be a powerfull eXception Management System. As soon as they appear, exceptions are identified and automatically directed to the ad hoc user(s) for quick and efficient resolution. Users are pro-actively alerted on unreconciliated messages ensuring that deadlines for key events are not missed. For either a single exception or a group of exceptions, a case is created. User-defined rule(s) streamline the investigation path, the resolution flow. The exception(s) case includes :
- related exceptions and correspondences (in & out ; internal & external)
- note book : any comment (based on templates), any other relevant information (text and/or image insertion), user can add up as many notes as needed
- full or semi automated follow-ups based on pre-defined templates, and pre-defined scheduling
- dynamic and multi way dashboard grouping exceptions by : number of notes, number of follow-ups, valuation ranges, risk levels, ages range, ... and by any combination of these - single point of access for all exceptions details (among others : original message)
Pro Active Risk Control and Straight Through Processing
XMS Generic automatically attributes a risk level to each exception for better follow-up and resolution (priority escalation). A dynamic dashboard shows an overall view of the exceptions, differently splitted in various possible groups according to : risks levels, age ranges, valuation ranges, ... All exception information is available from the dashboard (drilldown functionality).
Comprehensive Functionality and full Flexibility
XMS Corporate Actions is thoroughly integrated with the XMS solutions range to enable complete transaction processing on a single platform, it is a comprehensive solution for transaction lifecycle control. Easy to integrate into existing hardware and software environments, XMS Corporate Actions is architected as a end-to-end processing package.
XMS Corporate Actions : highest matching rates
- User-defined matching rules (GUI)
- Unlimited matching sets (set of reconciliation rules)
- Unlimited reconciliation rules (within a matching set)
- Flexible rules : any field can be used as criterion in rules'definition
- Flexible rules : matching with tolerance (aggregation functions), for example to avoid rounding mistakes, etc.
- Restrictions (filters) on matching set and/or on rule. For example : specific matching set for specific accounts’group, specific rule for specific transactions’ type ; etc.
- Data enhancement in case of poor or incomplete data, differently referenced information, ... in order to create comparable data (make the matching possible!)
- Possibility to add new fields (e.g. internal references, conversion factors, etc.) and to edit specific field(s)
- One-to-one, one-to-many and many-to-many matching keys
- Multiple match : transaction(s) grouped in multiple ways as ‘offered matches’
- Multi sources matching
Streamlined events messages processing
Within the Coporate Actions process, information capture, verification (data scrubbing) and distribution take particularly much time and present an important risk level. Such risks involved in these processes are, among others, inacurrate data being received from multiple sources. XMS Corporate Actions eradicates theses risks by automatically catching and processing (data integration) all message types. SWIFT MT564 and others notification message types (different formats) are handled by XMS Corporate actions : it automatically extracts core information thanks to user-defined rules.